MONTGOMERY, Ala. (WDNews) — Gov. Kay Ivey announced Wednesday that Alabama has been named one of the nation’s top 10 states for doing business by Area Development magazine, citing the state’s strong economic fundamentals and pro-business environment.
In the magazine’s 2025 Top States for Doing Business report, Alabama ranked No. 8 overall and earned the top spot for Favorable Property Tax. The state also placed in the top 10 in eight other categories, including No. 3 for Overall Cost of Doing Business.
“Alabama’s high ranking in this respected national survey confirms what we already know: Our state is open for business and built for success,” Ivey said. “By keeping taxes low, cutting red tape and investing in our people and infrastructure, we’ve created an environment where companies can thrive and communities can grow.”
The annual survey evaluates states based on key factors such as tax structure, incentives, workforce readiness and site availability. Alabama’s rankings included:
- No. 1 — Favorable Property Tax
- No. 3 — Overall Cost of Doing Business
- No. 3 — Favorable Regulatory Framework
- No. 4 — Business Incentives Programs
- No. 6 — Cooperative Local and State Government
- No. 6 — Site Readiness Programs
- No. 7 — Workforce Training Programs
- No. 7 — Availability of Sites
- No. 9 — Energy Cost
“This recognition reflects Alabama’s ongoing commitment to fostering a pro-growth, pro-business climate,” Commerce Secretary Ellen McNair said. “From our competitive incentives to our nationally respected workforce training programs, Alabama continues to prove that we’re not just participating in the race for economic growth – we’re leading it.”
The magazine noted that the 2025 rankings reflect how states are adapting to shifting corporate priorities, where speed, workforce readiness and infrastructure have become more critical.
“This year’s rankings reflect a rapidly evolving economic development landscape – one shaped by pressure on timelines, power infrastructure and workforce pipelines,” the report stated. “The consultant panel behind the survey made clear that states no longer rise to the top simply by offering low taxes or generous incentives. Today, it’s about execution: how quickly and reliably a state can align land, labor, logistics and leadership behind a fast-moving project.”
Alabama has ranked in the top 10 of Area Development’s business-friendliness survey each year of Ivey’s tenure. The state also ranked No. 8 in the 2024 report.
“This is a proud moment for Alabama and a signal to the world that we’re ready for what’s next,” Ivey said. “Whether you’re a global manufacturer or a high-tech startup, Alabama has the people, the programs and the partnerships to help your business grow.”
Officials said the recognition comes as Alabama continues to attract major growth projects across industries such as automotive, aerospace, chemicals and advanced manufacturing. In September alone, nearly $2 billion in new capital investment was announced through high-impact projects across the state.
